24
Lease Proposal 570 Commerce Boulevard Carlstadt, New Jersey Prepared for: Bauble Bar, Inc. Date: October 12, 2016
Lease Proposal570 Commerce Boulevard
Carlstadt, New Jersey
Prepared for: Bauble Bar, Inc.
Date: October 12, 2016
Exhibit List
BaubleBar, Inc. Lease Proposal
570 Commerce Boulevard Carlstadt, New Jersey 07072
Items Exhibit
Written Proposal N/A
Russo Notable Projects
Project Reference List A
Property Photo & Plans
Property Photo B1
Property Site Plan B2
Office Plan B3
GIS Aerial & Location Map
Transportation Network B4
Location Map B5
Estimated Cost Breakdown of CAM Expenses and 2015 Real Estate Taxes C
VIA ELECTRONIC MAIL October 12, 2016 Mr. Andrew Siemsen Executive Managing Director Cushman and Wakefield of New Jersey, Inc. 333 Thornall Street Suite 1A Edison, NJ 08837 Re: Lease Proposal 570 Commerce Boulevard, Unit D Carlstadt, New Jersey 07072 Dear Andrew: Pursuant to your request for proposal dated September 28, 2016, Russo Development is pleased to submit this proposal to Bauble Bar to lease space at the above referenced property subject to the following terms and conditions: 1. Landlord: 570 Commerce Boulevard Company, LLC,
an affiliate of Russo Development LLC, 570 Commerce Boulevard Carlstadt, New Jersey 07072
Russo Development (hereinafter referred to as “Russo”) is one of the most experienced owner/developers in the New York Metropolitan Area, which has built, owns and manages over three million square feet of space for clients such as NYSE Euronext, JP Morgan Chase, Credit Suisse, Macy’s, Pepsi, and SunGard Availability Services. During its forty-five (45) year history, it has completed over sixty (60) built-to-suit projects in New Jersey. Russo is a fully-integrated real estate and construction firm with in-house land use, architecture,
Mr. Andrew Siemsen Cushman and Wakefield of New Jersey, Inc.
October 12, 2016
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Commercial | Residentia l | Mission Cr it ical
civil engineering, construction management, general contracting, and property management capabilities. A brief description of our notable projects with client references is attached as Exhibit “A”.
2. Tenant: Bauble Bar, Inc.
1115 Broadway Fifth Floor New York, NY 10011
3. Property: 570 Commerce Boulevard Carlstadt, NJ 07072 Unit D- 33,002 square feet
4. Leased Premises/Area: 33,002 square feet of total floor area. Additional information on the property, the demised premises, the area’s transportation network and a location map, has been attached as Exhibits “B1 through B5”.
5. Use: The Tenant shall be permitted to use the Premises for
general office, warehousing and distribution. Those uses are consistent with the current zoning of the Property which is Light Industrial and Distribution “A” (LI-A) zone within the New Jersey Meadowlands Commission (NJMC). The uses in the LI-A zone specifically include: Light Industry, Offices, Research and Development Facilities, and Warehouse and Distribution Facilities.
6. Lease Commencement: February 1, 2017 (Lease Commencement Date) as
evidenced by a temporary certificate of occupancy from the New Jersey Meadowlands Commission (NJMC) and Borough of Carlstadt.
7. Rent Commencement: March 1, 2017 8. Lease Term: Ten (10) years 9. Base Rent: $8.25 P.S.F per annum
Base Rent shall be triple-net to the Landlord and shall increase three percent (3%) cumulatively on an annual basis through the Initial Lease Term.
Mr. Andrew Siemsen Cushman and Wakefield of New Jersey, Inc.
October 12, 2016
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Commercial | Residentia l | Mission Cr it ical
10. Taxes and CAM: The lease shall be “triple-net” to the Landlord and the Tenant shall pay the following, commencing on the Rent Commencement Date and throughout the Initial Lease Term (collectively the “Lease Term”):
(a) All Operating Expenses for the Premises including, but not limited to, all utility usage charges, snowplowing, landscaping, fire alarm system monitoring, janitorial services, general liability and property insurance coverage, maintenance and repair of all building systems, and all other maintenance, repair and operating expenses;
(b) All real estate taxes, added assessments, and special assessments; and
(c) All repairs and replacements to or for the Premises. Landlord shall provide a one (1) year warranty on any replacements required within the Premises.
No management fee shall be charged by Landlord to Tenant during the Lease Term for any property management services provided by the Landlord; Tenant shall only be responsible for Landlord’s out-of-pocket expenses for such services. An estimated cost breakdown of the common area maintenance expenses and real estate taxes has been attached as Exhibit “C”.
11. Utilities: Unit D has its own dedicated electrical service and
utility meter. The gas and water meters are common for the entire building and billed based on tenant’s proportionate share of the building’s square footage (40.86%).
12. Landlord’s Work: Landlord shall be responsible for delivering the premises
to lessee in “broom swept” condition with all electrical systems, loading docks, doors, HVAC units, sprinkler system, plumbing fixtures in good working order and the roof free of leaks. Landlord shall provide a one (1) year warranty on all capital items.
Mr. Andrew Siemsen Cushman and Wakefield of New Jersey, Inc.
October 12, 2016
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Commercial | Residentia l | Mission Cr it ical
13. Sprinkler System: The building is serviced by a wet system with a sprinkler
density of .33 GPM/3,000 SF. 14. Security Deposit: To be determined upon review of Tenant’s current
financial statements. 15. Code Compliance: Landlord agrees to represent to the best of its knowledge
that, as of the commencement date of the lease, the Demised Premises, and any common areas under the Lease, shall be in compliance with all laws and regulations.
16. Sublet/Assignment: Tenant shall have the right to assign or sublet the
Demised Premises to an affiliated entity with Landlord’s consent. Landlord shall grant consent to this assignment provided that Tenant remains liable for all obligations under the Lease. For non-affiliated entities, Tenant shall have the right to assign or sublet the Demised Premises subject to the consent of the Landlord provided that Tenant remains liable for all obligations under the Lease.
17. Signage: Tenant shall be permitted to place signage on the
existing monument sign consistent with the current layout. No signage shall be permitted to be affixed to the building.
18. Building Access: Tenant shall have access 24 hours per day, 7 days per
week, 52 weeks per year to the Demised Premises, and parking area.
19. Restoration: Landlord shall have the right to require Tenant, at
Tenant’s sole cost and expense, to remove all improvements or fixtures installed by Tenant at the Premises, and restore the Premises to its original condition as delivered by the Landlord to the Tenant, at the expiration of the Lease Term.
20. Alterations: Tenant shall not make any alterations, decorations, additions, or improvements, in or to the Demised
Mr. Andrew Siemsen Cushman and Wakefield of New Jersey, Inc.
October 12, 2016
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Commercial | Residentia l | Mission Cr it ical
Premises, without first obtaining Landlord’s written consent thereto, which consent may be arbitrarily withheld with respect to any proposed structural/mechanical alterations or additions, but shall not be unreasonably withheld as to other alterations or additions.
21. Parking: Landlord shall provide approximately twenty (20) parking spaces for Tenant’s exclusive use. Landlord controls additional spaces in the parking area and more spaces can be made available. Additionally, there is a NJ Transit bus station and train service in close proximity to the property (See attached as Exhibits “B2-B5.”)
22. Brokerage: Landlord agrees to pay Tenant’s broker (Cushman and Wakefield), a commission subject to the terms and conditions of a separate agreement. Tenant shall warrant and represent that it has not dealt with any other real estate broker in connection with this transaction.
23. Confidentiality: Landlord and Tenant shall not disclose the fact that
conversations relating to this potential transaction are taking place, or discuss with any party the potential terms of such prospective transaction, except on an as-needed basis (e.g. with Landlord’s or Tenant’s agents such as engineering consultants, counsel, etc.).
24. Non-Binding: It is intended and agreed that no binding legal
obligations shall arise from this proposal or its acceptance until and unless the parties have negotiated and executed a formal, written lease agreement.
25. Lease Contingency: The prospective tenant shall be made aware that Landlord is currently discussing a buy-out of the current Tenant’s lease and the terms and conditions detailed above shall be contingent upon those buy-out discussions.
Mr. Andrew Siemsen Cushman and Wakefield of New Jersey, Inc.
October 12, 2016
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Commercial | Residentia l | Mission Cr it ical
Please do not hesitate to contact us with any questions or comments you have regarding this proposal. Very truly yours, Russo Development, LLC on behalf of Landlord
Michael J. Pembroke Adam M. Pasternack Executive Vice President SVP-Leasing and Property Management
EXHIBIT A
1
Exhibit “A”
Russo Development Project References 1. Credit Suisse- Critical Data Center Facility: Year Constructed: Completed Address: Clifton, New Jersey Tenant: Credit Suisse (USA), Inc., Building/Leased Area: 284,342 S.F. Use: Critical Data Center Developer/Owner: Russo Development, LLC LEED: LEED Gold Client Project Contact: Robert Krizman Senior Vice President Jones Lang LaSalle 111 Wood Avenue South
Iselin, NJ 08830 Tel: (732)-590-3300
Client Business Contact: Andrew B. Federbusch Credit Suisse (USA), Inc.,
11 Madison Avenue New York, NY 10010-3629 Tel: (212) 656-5231
Broker Contact: Lewis Miller CB Richard Ellis, Inc. MetLife Building
200 Park Ave. 17-19 Floors New York, NY 10166 (212) 984-8328
2
2. Macy’s Parade Studio Tenant Name: Macy’s Retail Holdings Inc. Year Constructed: 2011 Address: Moonachie, New Jersey Leased Area: 71,449 S.F. Use: Office, Assembly & Design Developer/Owner: Russo Development, LLC LEED: LEED Certified Client Business Contact: Todd Scheffler Director of Real Estate Macy’s Inc.
7 West 7th Street Cincinnati, OH 45202 (513) 579-7672
Broker Contact: William Waxman Executive Vice President CB Richard Ellis, Inc.
Park 80 West- Plaza II Saddle Brook, NJ 07606 (201)712-5600
3
3. NYSE- Critical Data Center Facility: Year Constructed: 2010 Address: Mahwah, New Jersey Tenant: NYSE Euronext, Inc. Building/Leased Area: 395,898 S.F. Use: Critical Data Center Developer/Owner: Russo Development, LLC Client Project Contact: Doane Kelly Principal KLG, Inc.
104 Fifth Avenue New York, NY 10011 Tel: (212) 514-4601
Client Business Contact: Jeffrey Pellet Senior Vice President-Global Real Estate
NYSE Euronext, Inc. 11 Wall Street New York, NY 10005 Tel: (212) 656-5231
4
4. J.P. Morgan Chase- Critical Data Center Facility: Year Constructed: 2001, Expansion completed 2008 Address: Carlstadt, New Jersey Tenant: J.P. Morgan Chase Building/Leased Area: 249,318 S.F. Use: Critical Data Center – Chase’s largest worldwide Developer/Owner: Russo Development, LLC Client Project Contact: George Perdikoylis Project Manager JP Morgan Chase
575 Washington Boulevard Jersey City, NJ 07310 (201) 595-6152
Client Business Contacts: Gregg F. Weisser Vice President – Corporate Real Estate
JP Morgan Chase 270 Park Avenue, #29 New York, New York 10017-2014 (212) 270-5656
Edward J. Joyce Vice President - Critical Systems & Engineering JP Morgan Chase
575 Washington Boulevard Jersey City, NJ 07310
5
5. Pepsi Bottling Group- Office and Distribution Facility: Tenant Name: Pepsi Bottling Group Tenant Since: 2007 Year Constructed: 2007 Address: Kearny, New Jersey Leased Area: 135,115 S.F. Use: Office, warehouse, and distribution Developer/Owner: Russo Development, LLC Client Business Contact: Cindy Poggiogalle Sr. Manager, Worldwide Real Estate The Pepsi Bottling Group
One Pepsi Way Somers, NY 10589 (914) 767-6543
Broker Contact: Alan Peterson Principal Choyce-Peterson, Inc.
201 West Main Street Stamford, CT 06902 (203) 961-8170
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6. HD. Smith Pharmaceutical- Office and Distribution Facility: Tenant Name: HD Smith Wholesale Drug Company Tenant Since: 2000 Year Constructed: 2006 Address: Kearny, New Jersey Building/Leased Area: 211,418, S.F. Use: Regional offices, warehouse and distribution Developer/Owner: Russo Development, LLC Client Project Contact: Jon Heller H.D. Smith Wholesale Drug Co. 410 Commerce Boulevard Carlstadt, NJ 07072
(201) 438-8666 ext. 5054 Client Business Contact: Harvey Tannenbaum Vice President – Corporate Affairs H.D. Smith Wholesale Drug Co. 410 Commerce Boulevard Carlstadt, NJ 07072
(201) 438-8666 ext. 50
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7. SunGard- Mission Critical Facilities (3 properties): Address: Carlstadt, New Jersey Tenant: SunGard Recovery Services Building/Leased Area: 620,424 S.F. Uses: Data Center and Disaster Recovery Services Developer/Owner: Russo Development, LLC Client Project Contact: Michael Malone Project Manager-SunGard M.F. Malone, Inc. 1043 Gen. Lafayette Boulevard
West Chester, PA 19382 Tel: (610) 793-2733
Client Operations Contact: Ray Larsen
Director - Operations SunGard Availability Services
777 Central Boulevard Carlstadt, NJ 07072 Tel: (201) 729-2396
Client Real Estate Contact: Edward McKeever Chief Financial Officer SunGard Availability Services 680 East Swedesford Road Wayne, PA 19087
Tel: (484) 582-2626
EXHIBIT B
WBWBWB
67
69
71
94
WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB WB
WBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWBWB WB
WB WB WB WB WB WB WB
60
61
62
63
64
65
66
68
70
72
28 27 26 25 24 23 22
67891011121314151617181920 5
LH
RESERVED123421 VISITORS VISITORS VISITORS
73 74 75 76 77 79 80 81 82 83 84 85 86 87 88 89 90 91 9278 93
NO PARKING FIRE ZONE
NO PARKING FIRE ZONE
NO PARKING FIRE ZONE
NO PARKING FIRE ZONE
NO PARKING FIRE ZONE
NO PARKING FIRE ZONE
WB WB WB WB WB
RESERVED
WB
RESERVED
WB
RESERVED
WB
RESERVED
WB
RESERVED
WB
RESERVED
WB
WB WB WB WB WB WB
R17R18R19R20R21R22
VISITOR
R2 R1R3
RESERVED
R4
RESERVED
R5R8R9R10 R7R11R12R14R15R16 R13
VISITOR VISITOR VISITOR VISITOR
VISITOR VISITOR VISITOR
R23R24
R6
CO
MP
RE
SS
OR
R25R26R27R28R29R30
B2
UNIT D
SITE PLANEXISTING BUILDING AT
CARLSTADT, BERGEN COUNTY, NEW JERSEY
570 COMMERCE BLVD.
BUILDING
LOCATION
BUILDING DATA
CO
MM
ER
CE
BO
ULE
VA
RD
UNIT D
20 SPACES HELD BY RUSSO
LOCATION MAP
Date: 10/7/16
OFFICE
AREA
100500 10 25
B3
UNIT D
OFFICE PLANEXISTING BUILDING AT
CARLSTADT, BERGEN COUNTY, NEW JERSEY
570 COMMERCE BLVD.
LOCATION MAP
BUILDING
LOCATION
I.T. / SERVER
KITCHEN
LOBBY
Date: 10/7/16
W.T.M.T.
OFFICE #1
SECURITY ROOM
OFFICE #2
OFFICE #3
BUILDING DATA
420 1
NJ TRANSIT STATION -WOODRIDGE
LEGEND
NJ TRANSIT BUS STOPWEEKDAY RUSH HOUR
161 TO NYC
772 TO SECAUCUS JUNCTION
NJ TRANSIT STATION -RUTHERFORD
B4
TRANSPORTATION
NETWORK
BOROUGH OF CARLSTADT, BERGEN COUNTY, NEW JERSEY
570 COMMERCE BLVD.
EXISTING BUILDING AT
ROUTE
80
ROUTE
95
ROUTE
95
ROUTE
95
46
46
17
17
3
3
46
ROUTE
95
ROUTE
95
Date: 10/7/16
LOCATION MAP
5 MILES
B5BOROUGH OF CARLSTADT, BERGEN COUNTY, NEW JERSEY
570 COMMERCE BLVD.
EXISTING BUILDING AT
10 MILES
Date: 10/7/16
EXHIBIT C
Russo Development 570 Commerce Blvd.
Carlstadt, NJ 07072
Tel: (201) 487-5657
Fax: (201) 487-6440
Website: www.russodevelopment.com
Total Building Size 80,778 Square feet
Total Cost Cost per SFCarlstadt 181,539$ 2.247$
Total Cost Cost per SFSewer discharge charges 2,475$ 0.031$ Actual
Insurance (Flood, Property, General Liability, and Umbrella Liability) 21,761$ 0.269$ Actual
Snowplowing (varies depending on annual accumulation) 18,891$ 0.234$ Actual
Water (water usage and fire line 9,407$ 0.116$ Actualstandby charges)
Landscaping 14,408$ 0.178$ Actual
Maintenance and Repair charges 8,143$ 0.101$ Actual
Total CAM Charges 75,085$ 0.930$
Total Real Estate Taxes and CAM Charges 256,624$ 3.177$
Common Area Maintenance Charges
Note: The above charges do not include telecommunications, gas, or electric utility usage fees. These costs will vary depending on the usage patterns of each tenant.
570 Commerce Blvd.Carlstadt, NJ 07072
Real Estate Taxes Common Area Maintenance Charges
Calendar Year 2015
Real Estate Taxes
